PSMJ Profile
The Pacer Swan SOS Moderate (July) ETF is an actively managed exchange-traded fund designed to strategically invest in FLEX Options linked to the market performance of the SPDR S&P 500 ETF Trust. FLEX Options are customizable exchange-traded options contracts that offer flexible terms including exercise price, style, and expiration dates, enabling the fund to tailor its hedging and investment strategies to changing market conditions.
The primary investment strategy involves using FLEX Options to manage risk and provide targeted exposure to the SPDR S&P 500 ETF Trust. This underlying ETF, a unit investment trust, aims to replicate the price and yield performance of the S&P 500 Index, which is a widely recognized benchmark of large-cap U.S. equities. The funds approach focuses on mitigating downside risk while participating in potential upside performance.
The Pacer Swan SOS Moderate (July) ETF employs a sophisticated options-based strategy to enhance its portfolio management. By investing in FLEX Options, the fund seeks to offer a balanced risk-return profile, aligning with moderate risk tolerance profiles. The use of FLEX Options allows for precise adjustments to the funds exposure based on market conditions, providing a level of customization not available with standard options.
As a non-diversified fund, the Pacer Swan SOS Moderate (July) ETF concentrates its investments in options related to a single underlying ETF, which may lead to higher volatility and risk. Investors should be aware of the potential for significant fluctuations in the funds performance due to changes in the value of the underlying ETF and the complexities involved in managing FLEX Options.
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